Agenda item

Cllr Liz Leffman, Leader of the Council, Chloe Taylor, Head of Economy, and Nigel Tipple, LEP Chief Executive, have been invited to present a report on Local Enterprise Partnership (LEP) Integration.

The Committee is asked to consider the report, raise any questions arising, and to AGREE any recommendations it wishes to make to Cabinet arising therefrom.

NB The report for this item is attached. However, a slide deck will also be used during the meeting, which will be issued as a supplement.

Cllr Liz Leffman, Leader of the Council, Chloe Taylor, Head of Economy, and Nigel Tipple, LEP Chief Executive, were invited to present a report on Local Enterprise Partnership (LEP) Integration.

The Leader introduced the report and explained the background and rationale of the LEP integration following central government’s decision to withdraw funding, which aims to enhance the strategic leadership and coordination of the local economic development and recovery.

The Leader outlined the benefits and opportunities of the integration, such as streamlining the governance and funding arrangements, strengthening the partnership and collaboration between the County Council and local businesses, and aligning the economic and social objectives.

The Leader highlighted some of the challenges and risks involved, such as managing the expectations and interests of different stakeholders, ensuring the continuity and quality of the LEP functions and services, and complying with the legal and financial requirements.

The LEP Chief Executive discussed the integration report, explaining the handover of LEP operations to the County Council, as the sole ‘member,’ following central government’s discontinuation of independent LEPs nationally. The second phase of the transition included revising the LEP’s Strategic Economic Plan, creating a new business strategy, and stakeholder engagement. The LEP continued to dedicate itself to overseeing public projects, promoting commerce, advancing skills development, and fostering innovation, while also representing local economic interests. Aligning with the County Council's corporate objectives, the LEP considered new policy environments and approaches like community wealth building, circular economy, and doughnut economics. The LEP's governance was adapted during this transition and reports directed to the County Council as the sole ‘member.’

The Committee welcomed the report and expressed support for the LEP integration. Several issues and questions were raised concerning the LEP Integration report, as follows:

·       Members emphasised their desire to see as wider a range as possible of Oxfordshire businesses being represented, especially those in retail and manufacturing.

The Banbury Business Improvement District was cited as a valuable resource for local business knowledge by Councillors and the LEP's Chief Executive. Members also recommended utilizing local groups and council members as resources for insights into area businesses. The Chief Executive of the LEP emphasised that companies from various sectors are central to their efforts, with a local business database containing about eight thousand entries reflecting a wide range.

·       Members questioned the level of liability the Council had as a result of the integration of the LEP, especially in relation to the LEPs on-going budget.

The Leader emphasized that if the LEP were to maintain its current form, its reserves would suffice in covering expenses for two years, although this would be contingent on the manner in which the new administration allocates funds to such initiatives.

The Chief Executive of the LEP clarified that the Council has the authority, via the Leader, to ask for or insist on the approval of the LEP's business plan. This blueprint was currently undergoing preparation, with a preliminary version expected by September.

As far as finances are concerned, the LEP was already fully financed up until March 2025, and it would not require additional monetary support from the Council.

·       Clarity was sought over the governance of the LEP following its integration into the Council, especially with the Council becoming the sole member, where there had previously been a board.

The Leader informed the Committee that the structure of the LEP governance was still a work in progress with various avenues and forms being investigated. The Leader insisted that the local councils and Future Oxfordshire Partnership (FOP) would continue to work closely with the LEP.

The Committee continued to question who held ultimate accountability for the LEP. Officers were unable to provide a definitive answer during the meeting.

·       The Committee noted that they had discussed in detail the need for LEP governance, and that further scrutiny of the LEPs governance should be conducted by the Audit and Governance Committee.

Cllr Mallon left the Committee meeting at this point and did not return.